WallStSmart

Automatic Data Processing Inc (ADP)vsKlaviyo, Inc. (KVYO)

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Smart Verdict

WallStSmart Research — data-driven comparison

Automatic Data Processing Inc generates 1479% more annual revenue ($21.95B vs $1.39B). ADP leads profitability with a 20.1% profit margin vs 0.5%. ADP trades at a lower P/E of 26.2x. ADP earns a higher WallStSmart Score of 62/100 (C+).

ADP

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 8.0Value: 4.0Quality: 4.0
Piotroski: 2/9Altman Z: 0.53

KVYO

Avoid

33

out of 100

Grade: F

Growth: 7.3Profit: 2.5Value: 5.0Quality: 8.0
Piotroski: 3/9Altman Z: 2.51
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADPSignificantly Overvalued (-84.1%)

Margin of Safety

-84.1%

Fair Value

$165.18

Current Price

$285.37

$120.19 premium

UndervaluedFair: $165.18Overvalued
KVYOUndervalued (+28.2%)

Margin of Safety

+28.2%

Fair Value

$28.34

Current Price

$20.55

$7.79 discount

UndervaluedFair: $28.34Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ADP5 strengths · Avg: 8.8/10
Return on EquityProfitability
73.2%10/10

Every $100 of equity generates 73 in profit

Market CapQuality
$113.74B9/10

Large-cap with strong market position

Profit MarginProfitability
20.1%9/10

Keeps 20 of every $100 in revenue as profit

Operating MarginProfitability
23.5%8/10

Strong operational efficiency at 23.5%

Free Cash FlowQuality
$1.36B8/10

Generating 1.4B in free cash flow

KVYO2 strengths · Avg: 8.5/10
Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
26.4%8/10

Revenue surging 26.4% year-over-year

Areas to Watch

ADP4 concerns · Avg: 3.8/10
PEG RatioValuation
2.504/10

Expensive relative to growth rate

P/E RatioValuation
26.2x4/10

Moderate valuation

Price/BookValuation
18.8x4/10

Trading at 18.8x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

KVYO4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Profit MarginProfitability
0.5%3/10

0.5% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
672.7x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : ADP

The strongest argument for ADP centers on Return on Equity, Market Cap, Profit Margin. Profitability is solid with margins at 20.1% and operating margin at 23.5%.

Bull Case : KVYO

The strongest argument for KVYO centers on Debt/Equity, Revenue Growth. Revenue growth of 26.4% demonstrates continued momentum.

Bear Case : ADP

The primary concerns for ADP are PEG Ratio, P/E Ratio, Price/Book.

Bear Case : KVYO

The primary concerns for KVYO are EPS Growth, Profit Margin, Piotroski F-Score. A P/E of 672.7x leaves little room for execution misses. Thin 0.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

ADP profiles as a mature stock while KVYO is a growth play — different risk/reward profiles.

ADP carries more volatility with a beta of 0.84 — expect wider price swings.

KVYO is growing revenue faster at 26.4% — sustainability is the question.

ADP generates stronger free cash flow (1.4B), providing more financial flexibility.

Bottom Line

ADP scores higher overall (62/100 vs 33/100), backed by strong 20.1% margins. KVYO offers better value entry with a 28.2% margin of safety. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Automatic Data Processing Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Automatic Data Processing, Inc. (ADP) is an American provider of human resources management software and services.

Klaviyo, Inc.

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Klaviyo, Inc., a technology company that provides a software-as-a-service platform to enable its customers to send the right messages at the right time across email, short message service (SMS), and push notifications. The company is headquartered in Boston, Massachusetts.

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